In Malaysia, the primary legislation governing trade marks and copyrights are as follows.
Trade Marks
The Trademarks Act 2019 (the “TMA 2019”) and the Trademarks Regulations 2019 (the “Regulations”).
Unregistered trade marks are protected in Malaysia under the common law tort of passing off. Similar to many other jurisdictions around the world, the protection of unregistered trade marks is relatively limited as compared to their registered counterparts.
Copyrights
The Copyright Act 1987 (the “CA 1987”).
Copyright protection subsists automatically in works upon creation, and without the need for registration, so long as the conditions set out in the CA 1987 in relation to the qualification for copyright protection are satisfied.
Trade Marks
Malaysia is a member of the following main trade marks treaties and conventions:
Foreign trade marks belonging to a person from a Convention country (ie, a country which is a member of a multilateral treaty relating to trade marks to which Malaysia is also a party) are entitled to protection without registration in Malaysia if it is a well-known mark.
Copyright
Malaysia is a member of the following main copyright treaties and conventions:
Types of Trade Marks
The types of trade marks recognised in Malaysia are a:
A trade mark is defined as a sign in the form of a letter, word, name, signature, numeral, device, brand, heading, label, ticket, shape of goods or their packaging, colour, sound, scent, hologram, positioning, and/or sequence of motion, which is capable of being represented graphically and which is capable of distinguishing the goods or services of one undertaking from those of others.
Shape marks are registrable in Malaysia provided that they do not consist exclusively of:
In respect of trade marks containing the name of another person, whether living or dead, the applicant is required to provide the Registrar of Trademarks with a letter of consent from that person, if living, or of the representative of that person if deceased.
Under Section 72(1) of the TMA 2019, a collective mark distinguishes goods or services of association members and is governed by the First Schedule of the TMA 2019, which covers registration, use and infringement rules.
Section 73(1) of the TMA 2019 defines certification marks as signs indicating that goods or services meet specific criteria, such as quality or origin. Their registrability is governed by the Second Schedule of the TMA 2019.
Geographical indications (GIs) are governed by the Geographical Indications Act 2022. Unlike trade marks, GIs cannot be created but are recognised based on the natural link between the product and its origin. GIs identify the product’s region rather than a specific commercial enterprise, and all producers in that region may use the GI if their goods meet the established standards.
Industrial designs are generally protected under the Industrial Designs Act 1996. Designs or product packaging can be protected by way of trade mark protection so long as they can function as a source identifier used to distinguish one’s goods and services from those of other traders.
Registrability of Specific Marks
Trade marks containing special emblems, such as national flags or royal arms are not registrable unless the applicant provides consent from the relevant authorities.
Section 23(5)(h) of the TMA 2019 prohibits the registration of a trade mark that contains a word which is the commonly used or accepted name of a single chemical element or chemical compound, and it extends to words which are declared by the World Health Organisation as an international non-proprietary name.
Regulation 4(1) of the Regulations also prohibits the registration of trade marks that include names, initials or flags of international organisations or member countries.
Well-Known Marks
Under Section 76 of the TMA 2019, a well-known mark will be entitled to protection in Malaysia regardless of whether the mark is registered or is subject to a pending application in Malaysia, and whether or not the proprietor of the mark carries on business, or has any goodwill, in Malaysia.
Elements Required to Qualify for Trade Mark Protection
Under Section 3(1) of the TMA 2019, the following elements are required to qualify for trade mark protection:
The sign itself must be inherently capable of being distinguished (inherently distinctive). The sign can be considered distinctive if consumers are able to identify the goods or services bearing the sign as originating from a particular source because of the use made of the sign. The sign must be factually distinctive, although not inherently distinctive.
For a trade mark to be registrable, it must not fall within any of the absolute grounds of refusal under Section 23(1) of the TMA 2019, whereby the Registrar of Trademarks will refuse the registration of:
Proving Acquired Distinctiveness
A sign can be considered as factually distinctive through use ie, acquired distinctiveness. Under Section 23(2) of the TMA 2019, the Registrar of Trademarks will not refuse to register an application of a trade mark if, before the date of application for registration, the trade mark has in fact acquired a distinctive character as a result of its use.
Accordingly, signs which are descriptive or laudatory may be registered as trade marks if they are shown by evidence to be factually distinctive. In this case, evidence of use is necessary to prove factual distinctiveness.
Some of the criteria to determine whether a trade mark has acquired distinctiveness in Malaysia are the duration and extent of use (continuous and widespread use over time), whether or not the mark functioned as a trade mark and whether the continuous and widespread use of the trade mark makes the trade mark distinguishable in law.
Registered Trade Marks
Under Section 48(1) of the TMA 2019, the registered proprietor of a trade mark has exclusive rights to use and authorise the use of the trade mark for the goods or services for which it is registered, as well as to seek relief for infringement. These rights begin upon registration and last throughout the term of a trade mark.
Unregistered Trade Marks
The owner of an unregistered trade mark can enforce its rights by pursuing claims for passing off. The TMA 2019 also protects well-known unregistered trade marks by refusing registration of similar trade marks.
Section 7 of the TMA 2019 defines trade mark use as including visual or non-visual representations, use on goods, statements about services or aural representations.
Under Section 54(2) of the TMA 2019, use in the context of infringement can include:
Under Section 55(1)(b) of the TMA 2019, a person does not infringe a registered trade mark if they use a sign in good faith to describe the characteristics of goods or services, such as origin, quality or purpose.
There is no legal requirement to use a symbol to denote a registered trade mark in Malaysia. However, it is an offence to use the ® symbol for trade marks that are pending or unregistered in Malaysia and if found guilty, the offender will be liable to a fine not exceeding MYR10,000.
Applicants may use the trade mark symbol to indicate that the sign is used as a trade mark, but this is optional.
Logos can be protected as artistic works under the CA 1987, meaning trade marks can also benefit from copyright protection in Malaysia.
See 2.1 Types of Trade Marks on the registration of surnames. The CA 1987 and the TMA 2019 do not explicitly address interactions between trade marks and moral rights. Trade mark and copyright laws operate independently.
Types of Copyrightable Works
Sections 7 and 8 of the CA 1987 grant protection to literary works, musical works, artistic works, films, sound recordings, broadcasts and derivative works.
Mutual Exclusivity on Protection over Industrial Designs
Section 7(5) of the CA 1987 precludes copyright protection of industrial designs which are registered under any law related to industrial designs. Industrial designs are protected by the Industrial Designs Act 1996 instead.
The elements to qualify for copyright protection are set out in the CA 1987. They are as follows.
Definition of an “Author”
Section 3 of the CA 1987 defines an “author” for the following categories of works as:
Work Made for Hire
Section 26(2) of the CA 1987 provides that:
Limitation of Authorship to Humans
The current wording of the CA 1987 primarily leans toward addressing rights of individuals and legal entities. Section 10 of the CA 1987 provides that copyright subsists in every work eligible for copyright of which the author (or in the case of a work of joint authorship, any of the authors) is, at the time when the work is made, a “qualified person”.
A “qualified person” is defined by the CA 1987 as:
While this issue remains untested in the Malaysian courts, the existing legal framework limits the scope of a “qualified person” for copyrighted works to natural persons.
Joint Authorship
Joint authorship is statutorily recognised in Malaysia. A “work of joint authorship” is defined under Section 3 of the CA 1987 as “work produced by the collaboration of two or more authors in which the contribution of each author is not separable from the contribution of the other author or authors”.
As the CA 1987 and other regulations are silent on the determination of ownership percentages in regard to joint authorship works, percentages are determined by way of agreement between copyright owners themselves.
Provided that the joint authorships are awarded copyright ownership over the works, they are at liberty to exercise all rights tied to the copyright rights (see 3.4 Copyright Rights). Section 27 of the CA 1987 provides that the fees received by any of the copyright owners following an assignment or licence will be divided equally between all of the co-owners unless otherwise agreed by the parties.
Under the CA 1987, a copyright owner has the exclusive right to administer control over the management of their works, such as to act against any infringement against their copyrights, as well as rights to issue licences for the copyright. The economic rights of a copyright owner include the right to control:
Moral Rights
Paternity rights
Section 13(2) of the CA 1987 enables copyright owners to claim ownership over the originality of the works. Appropriate credit is to be provided to the source and author of the work for works commercially used, referenced, copied, included, showcased or shared with the public.
Integrity rights
Section 25(2) of the CA 1987 protects copyright owners by providing them with authority to, inter alia, prohibit any unauthorised user from misrepresenting the work as that belonging to another author, or to significantly distort or modify the original work to a degree as to negatively impact the reputation of the original author.
Term of Protection in Malaysia
The term of protection is as follows.
Termination of Copyright
Copyright protection (where entitled) is awarded as of right and would remain valid until the expiry of the term of protection of the work in question. Given the lack of a copyright registration regime in Malaysia, there are no specific means provided for terminating a copyright.
In Malaysia, all body corporates intending to operate as Collective Management Organisations (CMOs) must first be declared as a CMO by the director general of the Intellectual Property Office of Malaysia (MyIPO). These CMOs are governed by the CA 1987 and Copyright (Collective Management Organisation) Regulations 2022.
CMOs in Malaysia primarily administer functions to license copyrighted work, collect and distribute royalties and initiate enforcement actions against copyright infringements on behalf of copyright owners.
The existing CMOs declared by MyIPO cover a wide range of member representations, such as songwriters, composers, music publishers, recording companies and performers, writers and authors within the publication industry.
Copyright registration is not mandatory for works to qualify for copyright protection in Malaysia. However, copyright owners may apply for a Copyright Voluntary Notification (CVN), enabling the copyright owner to rely on the notification issued by MyIPO as prima facie evidence of ownership of the copyrighted work.
All CVNs are entered in the copyright register managed by MyIPO and are publicly accessible through MyIPO’s IP Online platform. See 3.2 Essential Elements of Copyright Protection.
All foreign copyright owners are required to appoint a local representative to assist with filing the necessary CVN applications with MyIPO.
The CA 1987 does not provide any requirements for the use of copyright notices and symbols.
To initiate a CVN application, the following forms have to be filed with MyIPO.
Form CR-1 (Information of Work and Applicant)
The following information must be included:
Form CR-3 (Appointment of Representative (if Applicable))
The details of the representative must be provided.
Filing Fees (as of December 2024)
The current fee structure is as follows:
Refusal of Registration
Due to the lack of a copyright registration regime in Malaysia, there are no examination and appeal processes.
Correction of Information on CVN
An amendment to a CVN application can be made to MyIPO via Form CR-4 together with payment of the prescribed fee. Clerical errors may be corrected via Form CR-6 along with payment of the prescribed fee.
Copyright can be protected under trade mark and related rights in Malaysia. The current scope of copyright laws are not limited based on trade mark or related rights.
Malaysia adopts the “first-to-use” principle. While it is not necessary to obtain trade mark registration in order to protect a trade mark, a registered trade mark owner will certainly have better rights as compared to the owner of an unregistered trade mark. Only a registered trade mark owner can bring an action for trade mark infringement.
See 2.3 Trade Mark Rights and 2.1 Types of Trade Marks on the different requirements for registering different types of trade marks.
The Trade Mark Register which contains details on all filed and registered trade marks in Malaysia is maintained by the Registrar of Trademarks and is publicly accessible through MyIPO’s IP online system.
While it is not mandatory to conduct searches for existing trade marks before applying to register a trade mark, it is advisable to do so.
Duration of Trade Mark Registration
A trade mark registration is valid for ten years from the date of registration and is renewable every ten years.
Late Renewal and Restoration
A renewal request must be made within six months of the registration’s expiry, or it will be deemed removed. The proprietor may request restoration within six months of removal or the registration ceases. Renewal only requires payment of the applicable fees.
Requirements and Procedures for Registration
Applications must be filed with MyIPO, either online or manually. An application may be made in a single application listing goods or services belonging to several classes (ie, a multi-class application).
The Registrar of Trademarks examines applications for compliance with the TMA 2019 and searches for conflicting trade marks. If the application meets registration requirements, it is accepted, and the Registrar of Trademarks will publish the application in the Intellectual Property Official Journal for opposition purposes. If no opposition is filed, the trade mark will be registered.
Filing Particulars
Among other things, the application must include:
Filing Fees
The fees are as follows:
Other Requirements
Any person who claims to be the bona fide proprietor of a trade mark may apply for registration of the trade mark. Under Section 95(2) of the TMA 2019, non-residents or those not primarily conducting business in Malaysia must appoint a local registered trade mark agent to act on their behalf.
Malaysia does not require proof of actual use before applying to register a trade mark but applicants must declare their intent to use the trade mark with the specified goods/services in Malaysia.
As part of its examination, the Registrar of Trademarks conducts a search of the Trade Mark Register to identify existing registered or pending trade marks that may conflict with the application. If a conflict is found, a provisional refusal may be issued under Section 24(2) of the TMA 2019 for trade marks identical or confusingly similar to existing trade marks.
Under Section 24(3) of the TMA 2019, registration is also refused for trade marks that are identical or similar to well-known trade marks, whether registered or unregistered, if such use could cause public confusion or damage the well-known trade mark proprietor’s interests.
Additionally, Section 24(4) of the TMA 2019 provides that the Registrar of Trademarks will refuse the registration of a trade mark if its use in Malaysia is prevented either by virtue of any rule of law protecting an unregistered trade mark (passing off), or any right existing beyond the provisions of the TMA 2019, including under the CA 1987 or the Industrial Designs Act 1996.
Under Section 33 of the TMA 2019, an applicant may request an amendment to a trade mark application before registration, for issues such as changes in the applicant’s name or address, wording errors or obvious mistakes. The amendment must not substantially alter the trade mark’s identity or expand the goods or services covered.
Additionally, Section 32 of the TMA 2019 allows the applicant to withdraw the application or limit the goods or services by filing a request with the Registrar of Trademarks.
Section 37 of the TMA 2019 provides that a trade mark application or registration may, upon the request of the applicant or registered proprietor, be divided into two or more separate applications for the registration of a trade mark. The request will be made to the Registrar of Trademarks before or after the trade mark is registered in the form determined by the Registrar of Trademarks together with the payment of the prescribed fee.
Division applications are usually considered when objections are raised against certain goods or services in a multi-class or single class application. Dividing the application allows the uncontested goods or services to proceed to registration while addressing the objection to the contested items separately.
Consequences of Providing Incorrect Information
Section 103 of the TMA 2019, provides that any person who makes or causes a false entry to be made to the Trade Mark Register, knowing or having reasons to believe that the entry or thing is false, commits an offence and may be liable to a fine not exceeding MYR50,000, a term of imprisonment not exceeding five years or to both.
The applicant is required to declare that the information provided in the application form is true to the best of their knowledge. In the case of error or mistake, the registered proprietor can request the Registrar of Trademarks correct any incorrect information on the trade mark application (see 4.7 Revocation, Change, Amendment or Correction of an Application).
Under Section 43(5) of the TMA 2019, any person having sufficient interest may apply to the court for the correction of any error or omission in the Trade Mark Register.
Rectifying Incorrect Information
In addition to the amendment procedure set out in 4.7 Revocation, Change, Amendment or Correction of an Application, Section 43 of the TMA 2019 provides that the Registrar of Trademarks may, at the request of the registered proprietor in the form determined by the Registrar of Trademarks together with the payment of the prescribed fee:
Section 43(6) of the TMA 2019 provides that any application for correction will not be made in respect of a matter affecting the validity of the registration of a trade mark.
See 2.2 Essential Elements of Trade Mark Protection for the absolute grounds of refusal of registration.
For the absolute grounds of refusal of registration for shape marks specifically, see 2.1 Types of Trade Marks.
Section 23 of the TMA 2019 lists additional grounds for refusal, including:
Applicants can respond by filing a written reply or requesting an ex parte hearing, submitting evidence if needed. Failure to respond results in the application being deemed withdrawn.
Malaysia is a signatory to the Madrid system and matters pertaining to international applications under the Madrid system are dealt with in Sections 74 and 75 of the TMA 2019.
An application for an international registration may only be made by:
Filing a Trade Mark Opposition
An opposition must be filed with the Registrar of Trademarks within two months of the publication of the acceptance of the trade mark application. An extension of up to two months may be granted by the Registrar of Trademarks. The TMA 2019 does not provide a cooling-off period for resolution.
Revocation/Cancellation of Trade Marks
Under the TMA 2019, an aggrieved person may apply to the court for the revocation of a trade mark where within a period of three years following the date of issuance of the notification of registration, the trade mark has not been put to use in good faith in relation to the goods or services for which the trade mark is registered in Malaysia and there are no proper reasons for non-use.
In respect of revocation by the Registrar of Trademarks, the Registrar of Trademarks may revoke the registration of a trade mark within 12 months from the date of registration of the trade mark if the Registrar of Trademarks is satisfied that it is reasonable to revoke the registration, taking the following into account.
Revocation/Cancellation of Copyrights
Copyright protection in Malaysia is governed by the CA 1987 and there are no formal registration requirements. As such, revocation or cancellation is not applicable to copyrights in the same way it is to trade marks.
Grounds for Opposition
In Section 34(2) of the TMA 2019, the grounds for opposition are as follows.
An opponent must further establish all of the requirements, namely, the opposed trade mark, if registered, would:
Grounds and Remedies for Revocation/Cancellation of Trade Marks
In addition to the provisions in 5.1 Timeframes for Filing an Opposition or Cancellation, a trade mark can be invalidated or revoked if it has become generic, misleads the public, breaches absolute grounds for refusal, conflicts with an earlier right or was obtained by fraud or misrepresentation. The court, not the Registrar of Trademarks, has jurisdiction to invalidate a trade mark.
Filing an Opposition
Any person may file a notice of opposition in the form determined by the Registrar of Trademarks together with the payment of the prescribed fee and send the notice of opposition to the applicant within the prescribed period from the date of the publication of the acceptance of an application for the registration of the opposed trade mark.
It is not necessary to appoint an agent for opposition proceedings. Under Section 95(2) of the TMA 2019, persons who do not reside or carry on business principally in Malaysia will have to appoint and authorise a local trade mark agent to act on their behalf.
Average Fees for Filing an Opposition
The average fees for a trade mark opposition are MYR950 for each class and the legal fees vary depending on the complexity of the matter.
Filing Revocation/Cancellation Proceedings
The applicant for revocation must be an “aggrieved person”. In Mesuma Sports Sdn Bhd v Majlis Sukan Negara [2015] 9 CLJ 125, an “aggrieved person” was considered to be a person who had used their mark as a trade mark or who had a genuine and present intention to use their mark as a trade mark in the course of trade which was the same as or similar to the registered trade mark that the person wanted to have removed from the Trade Mark Register. The person had to be someone who had some element of legal interest, right or legitimate expectation in its own mark which was being substantially affected by the presence of the registered trade mark. The interest and right also had to be legal and lawful.
Opposition Procedure
Upon receiving a notice of opposition, the applicant must file a counterstatement, failing which the application will be deemed withdrawn. The opponent and the applicant are then required to submit evidence in support of the opposition and application for registration of the trade mark respectively. Once this is completed, the Registrar of Trademarks will request the parties submit written submissions. The Registrar of Trademarks will decide to either refuse registration, register the mark or impose conditions. Appeals against refusals or conditional registrations can be made to the court.
Revocation/Cancellation Proceedings
Under Section 46 of the TMA 2019, an aggrieved person may apply to the court for the revocation of trade marks.
Partial Revocation
Section 46(4) of the TMA 2019 provides for partial revocation, where use has been made of a trade mark in respect of only some of the goods or services for which the trade mark is registered. In this situation revocation will only relate to those goods or services.
Any person aggrieved by the decision of the Registrar of Trademarks may appeal to the court. In the context of opposition proceedings, any appeal to the court against the Registrar of Trademarks decision will be made within one month from the date on which the Registrar of Trademarks written grounds of decision is issued to the parties.
For appeals against any refusal issued by the Registrar of Trademarks, the applicant has two months from the date of a total provisional refusal to request the Registrar of Trademarks written grounds for the decision, accompanied by the prescribed fee. The date of issuance of the written grounds is deemed the date of the Registrar of Trademarks decision for court appeals, which must be filed within one month of that date.
For the procedure and timescales for other appeals, specifically for infringement proceedings, see 11.1 Appellate Procedure and 11.2 Timeframes for Appealing Trial Court Decisions.
The TMA 2019 does not contain a provision that prevents an applicant from filing an amendment to the trade mark application during revocation or cancellation proceedings. However, see 4.9 Incorrect Information in an Application on the limitations on amendments.
The TMA 2019 does not specifically provide that proceedings involving invalidation and infringement can be heard together. However, as invalidation proceedings are also heard before the High Court, it is common for both invalidation and infringement actions to be consolidated (if they were commenced separately) and heard together, or for the party seeking invalidation to be heard first.
Under Section 47(6) of the TMA 2019, an aggrieved person can apply to the court to invalidate a trade mark registration on the ground of fraud. The TMA 2019 does not provide a special procedure for these proceedings. Alternatively, an aggrieved person can apply to the court to have pending trade mark applications suspended pending fraud investigations.
If the invalidation proceedings succeed, the trade mark registration will be invalidated.
Trade Mark Assignments
Assignments of trade mark applications/registrations are required to be in writing (usually by way of a deed of assignment) to be effective. These assignments may be done with or without the goodwill of the trade mark. Partial assignments are also recognised, whereby all goods and specifications to be assigned should be clearly listed in the deed.
Aside from assignments, trade marks are also transmissible including by way of any operation of law or upon the death of a trade mark owner.
All assignments and transmissions must be recorded with MyIPO. If they are not, the transaction will be ineffective against a person acquiring a conflicting interest in the trade mark.
Copyright Assignments
Assignment of copyrights must be in writing to be deemed valid in Malaysia. Due to the lack of a copyright registration regime in Malaysia, there is no legal requirement to record the assignment with MyIPO.
Copyrights are also transmissible, which generally include situations involving the death of a copyright owner and is executed by way of testamentary disposition.
All assignments/testamentary dispositions may be limited to only apply to acts which the copyright owner is exclusively in control of, the period of the copyright or a specific country or geographical area.
Trade Mark Licences
Licences for trade marks may be exclusive, non-exclusive, general or limited (in respect of goods and services or locality) and will only be deemed effective provided it is in writing and signed by or on behalf of the licensor.
Registered trade marks
By default, a licence to use a registered trade mark will be binding on every successor in title to the licensor’s interest unless:
Trade mark licences may be perpetual so long as the licence provides for the same and the registration remains valid.
Although not mandatory, recording the licence with MyIPO is highly recommended as this will constitute public notice of the licence, thereby strengthening the rights of the licensee.
Unregistered trade marks
The rights of licensees of unregistered trade marks are limited to those provided under common law.
Copyright Licences
Licences for copyrights are required to be made in writing before deemed to be valid and effective. The licence need not be recorded as Malaysia does not have a copyright registration regime.
In any event, the licensor is free to determine the nature and scope of copyright to be licensed. The period of licences can be negotiated between parties so long it is within the awarded term of protection stipulated under the CA 1987 (see 3.5 Term of Protection and Termination).
See 6.1 Assignment Requirements and Restrictions and 6.2 Licensing Requirements or Restrictions.
Generally, claims for both copyright and trade mark infringement must be commenced within six years from the act of infringement. A claim not brought within the prescribed time may be considered time barred.
Where there is an ongoing infringement, both the CA 1987 and the TMA 2019 provide that the limitation period would accrue from the date of the infringement. Otherwise, a defendant would be able to rely on other defences such as acquiescence, laches or delay to defend a claim for copyright or trade mark infringement.
Trade Mark Infringement
A trade mark would need to be registered in Malaysia before a trade mark owner can bring a claim for trade mark infringement. Claims of infringement of unregistered trade marks are usually brought under the tort of passing off.
Under usual circumstances, it would constitute an infringement if a person uses a sign which is identical to the trade mark in relation to goods or services which are identical with those for which it is registered, without the consent of the registered proprietor under Section 54 of the TMA 2019. When the trade marks are similar and it is used in relation to similar goods or services, there is a further need to establish the likelihood of confusion to the public.
Although it is more common for direct infringement suits to be brought against an infringer, the TMA 2019 also expands the scope of infringement to include secondary users. As such, the act of even stocking goods bearing an infringing mark for the purposes of selling or offering for sale to the public, could be classed as trade mark infringement in Malaysia.
Copyright Infringement
Copyright does not need to be registered in Malaysia before a claim for infringement is brought in court by a copyright owner.
In the Malaysian case of Megnaway Enterprise Sdn Bhd v Soon Lian Hock (sole proprietor of the firm Performance Audio & Car Accessories Enterprise) [2009] 3 MLJ 525, the necessary elements needed to prove copyright infringement were:
Under Malaysian copyright laws, there is no distinction between direct infringement and contributory/vicarious infringement. So long as an article infringes a copyright and all elements of infringement are shown, liability for copyright infringement can be found by the court.
Dilution and Cybersquatting
A claim for dilution is uncommon in Malaysia and there has not been a case brought in court for trade mark dilution. However, the Malaysian courts have awarded damages for the dilution of the goodwill of a trade mark owner.
Cybersquatting usually relates to the registration of a domain name. Where a domain name is identical or similar to a registered trade mark, or is being used in bad faith, an applicant can file a complaint with the Asian Domain Name Dispute Resolution Centre at its Kuala Lumpur office.
Copyright Management Information
There are no laws in Malaysia governing copyright management information and it is not defined under the CA 1987.
Copyright Infringement
Some of the factors that should be considered in determining whether use of copyright constitutes infringement are:
Trade Mark Infringement
The factors to determine trade mark infringement are as follows:
Trade Mark Infringement Lawsuit Requirements
To file a trade mark infringement lawsuit, the trade mark would need to be registered in Malaysia. It is common (although not mandatory) for a cease and desist letter to be issued to the infringer first prior to the commencement of legal proceedings.
Copyright Infringement Lawsuit Requirements
It is not mandatory for a copyright to be registered in Malaysia. Although a CVN or a statutory declaration would constitute prima facie evidence of copyright ownership, there are other avenues to prove ownership of copyright, especially through witness testimony during a trial.
Initiation of Civil Proceedings
Claims for copyright or trade mark infringement are usually initiated at a dedicated IP court in the High Court in Malaya.
Costs
Trade mark infringement
Typical incidental costs prior to filing a lawsuit would include a cease and desist letter as a means to offer an infringer the chance to resolve the matter out of court.
Copyright infringement
For copyright infringement claims, typical costs that would arise prior to the filing of a lawsuit are for the affirmation of a statutory declaration by the copyright owner in line with Section 42 of the CA 1987. This is to allow the copyright owner to have prima facie evidence of copyright ownership. Costs that would arise here would be the payment for affirming the statutory declaration before a Commissioner for Oaths.
Need for Legal Representation
It is preferable for parties to be legally represented by a solicitor in Malaysia should they choose to initiate a claim for copyright or trade mark infringement.
Foreign Owners
Trade mark
As trade marks are territorial in nature, a foreign owner would need to register the mark in Malaysia prior to initiating legal proceedings for infringement, unless it is a well-known mark.
Copyright
Copyright will usually subsist if the work is made in Malaysia. However, copyright protection is afforded and can be enforced in Malaysia if the works were first produced in a Berne Convention member country.
It is uncommon for a defendant or a potential defendant to file for a declaratory judgment proceeding in Malaysia, especially for non-infringement, although that doesn’t necessarily mean that it cannot be done.
However, it would be commonplace for a defendant to merely defend any action of copyright/trade mark infringement rather than initiating a lawsuit for non-infringement.
A defendant can file for a protective order in Malaysia, especially where it concerns the confidentiality of certain documents. When a protective order is granted by the High Court, it would limit the disclosure of certain documents or the redacting of documents where confidentiality of the documents is an issue.
In Malaysia, trade mark or copyright infringement claims are usually brought before the High Court. Parties may opt for judge-led mediation to resolve the matter quicker and reduce costs.
Decisions on trade mark or copyright infringement are usually made by the High Court which is the Court of First Instance.
Counterfeit Goods
Counterfeit goods are defined under the TMA 2019 as goods that are infringing goods in relation to a registered trade mark and the sign borne by the goods, or their packaging is a counterfeit trade mark. A counterfeit trade mark is defined as being a sign that is identical with the registered trade mark, is calculated to deceive, is applied to goods or services without the express or implied consent, conditional or otherwise of the registered proprietor and falsely represents that the goods or services are genuine goods or actual services of the registered proprietor or a licensee of the registered trade mark.
A trade mark owner will need to lodge a complaint with the Ministry of Domestic Trade and Costs of Living for the enforcement division to initiate an investigation. In the event the trade mark and the counterfeit are not identical, a Registrar of Trademarks verification will be required under Section 112(3) of the TMA 2019 for the purposes of the investigation. If the evidence provided by the trade mark owner is sufficient, the Ministry of Domestic Trade and Costs of Living will commence a raid action against the counterfeiter. Criminal proceedings will then be brought against the counterfeiter for the sale of the counterfeit product.
The trade mark owner is also at liberty to initiate civil proceedings against the counterfeiter for trade mark infringement.
Bootlegging
Although not generally referred to as bootlegging in Malaysia, bootlegging is illegal in Malaysia (be it bootlegged alcohol or recordings). Similar to the process involving counterfeit products, a complaint will need to be made to the Ministry of Domestic Trade and Costs of Living for an investigation to be commenced by the enforcement division. This will likely end up in a raid action commenced by the enforcement division which would lead to criminal proceedings.
A copyright owner would also be able to initiate a civil lawsuit against any bootlegged products.
See 7.5 Lawsuit Procedure.
Trade Mark Infringements
Infringement proceedings can only be initiated in the event the trade mark is registered. Claims of infringement of unregistered trade marks are usually brought under the tort of passing off.
Copyright Infringements
There is no mandatory requirement for a copyright owner to register its copyright in Malaysia. However, a voluntary notification of a copyright or a statutory declaration showing copyright ownership under Section 42 of the CA 1987 would be prima facie evidence of ownership. This would prevent voluminous documents having to be brought to court to prove copyright ownership. These attract statutory presumptions that also assist in obtaining injunctive reliefs.
The burden would then shift to the infringer to make a positive assertion that the ownership of the copyright does not belong to the plaintiff.
Trade Mark Infringement Costs
These are between MYR100,000 and MYR150,000 (USD20,000 and USD35,000).
Copyright Infringement Costs
These are between MYR200,000 and MYR250.000 (USD40,000 and USD50,000).
Factors Impacting Costs
Various factors can affect infringement proceeding costs. These include:
The usual defence that a defendant presents is that there is non-infringement of the trade mark, ie, the trade marks are distinguishable, unlikely to deceive or cause confusion to members of the public or that the trade mark was not “used” as a trade mark.
However, Section 55 of the TMA 2019 provides statutory defences which include:
Defences to copyright infringement can be found in Section 13(2) of the CA 1987. They include:
Exhaustion of Trade Mark Rights
The doctrine of exhaustion was analysed by the Malaysian Federal Court in the case of Guangzhou Light Industry & Trade Group Ltd & Ors v Lintas Superstore Sdn Bhd [2022] 4 MLJ 339 in the context of parallel imports. In this case, the Federal Court held that importation of products into Malaysia and their subsequent sale cannot be done without the consent of the trade mark owner. However, this is only in the context of parallel imports.
Based on the decision by the Federal Court, it would appear that the courts have taken a restrictive approach to the applicability of the doctrine of exhaustion where consent from the trade mark owner would need to be obtained before a defence of exhaustion can be invoked.
Exhaustion of Copyright
Section 13(1)(a) of the CA 1987 gives a copyright owner the exclusive right to control the distribution of copies of the copyrighted work. However, this is limited to the first distribution of the work, be it in a physical or digital format. Any subsequent distribution of the work would likely be caught under the doctrine of exhaustion. At present, there is no distinction between physical distribution and the distribution of digital content.
Permanent Injunctions
Judges always have discretion in ordering remedies, especially where it concerns any interim or permanent injunctions. For permanent injunctions, the courts would usually award a trade mark/copyright owner a permanent injunction against an infringer (so long as it is pleaded as a relief sought) once infringement is established.
Interim Injunctions
In general, a party seeking an interim injunction would need to satisfy the test laid down in the UK case of American Cynamid Co. v Ethicon Ltd [1975] AC 396, which was adopted and applied in Malaysia in the case of Keet Gerald Francis Noel John v Mohd. Noor Bin Abdullah & Ors [1995] 1 MLJ 193 which specified the following need to be established:
Furthermore, there is also a usual undertaking as to damages provided by a plaintiff in the event the plaintiff fails to prove their case or obtain a judgment for infringement.
Opposing Interim Injunctions
Some of the grounds to oppose an interim injunction are:
An assessment of damages or an account of profits is usually done after an infringer is found liable. This would be done in separate proceedings.
There are a number of different ways that the court may award damages including calculating any royalty that would have been paid or damages for licence fees lost. Courts also have regard to the flagrancy of the infringement.
In the event the infringement is caused by a direct competitor, there is also a route for an account of profits to be done, ie, the loss in sales that the owner of the trade mark/copyright suffered and the profits gained by the competitor.
Under the CA 1987, statutory damages for an infringement, as stated under Section 37 of the CA 1987 would be no more than MYR25,000 for each infringing work and not more than MYR500,000 in total.
The losing party would have to pay the costs of litigation including the court imposed tax (otherwise known as allocator fees). Although a litigant would usually expect to be able to recover 100% of the legal fees paid to solicitors, it is unlikely that the court would allow a full recovery of these legal fees.
Ex parte applications such as ex parte interim junctions, Anton Piller Orders, delivery up orders or doorstep delivery up orders are common relief avenues a litigant can pursue without notifying a defendant.
Under the Rules of Court 2012, the ex parte injunction will automatically lapse after 21 days and an inter partes hearing would be fixed within 14 days from the date the ex parte order was granted.
An aggrieved person can lodge complaints to the enforcement division of the Ministry of Domestic Trade and Costs of Living. Once a complaint has been made, the enforcement officers will usually carry out an investigation to initiate an enforcement raid action against an infringer.
Some of the details and/or evidence required by the enforcement division prior to any raid being conducted are:
Decisions for both trade mark and copyright infringement claims can be appealed from the High Court to the Court of Appeal.
This is typically done by:
The records of appeal includes:
Court of Appeal decisions can be further appealed to the Federal Court. However, this would typically only happen where there are novel issues of law in the lawsuit.
An appeal from the High Court to the Court of Appeal will need to be made within 30 days from the date of the High Court decision. The appeal process at the Court of Appeal can take up to a year from the date of the High Court decision. However, this can be reduced by filing a certificate of urgency at the Court of Appeal for an earlier hearing date.
With the rapid development of artificial intelligence (AI), one prominent issue up for discussion is the position of the law on AI in connection with the authorship of non-human entity generated work. Most commonwealth nations, including Malaysia, have yet to adopt legal measures to address this topic. The topic becomes more critical given the recent decision by the United Kingdom’s Supreme Court in the case of Thaler v Comptroller-General of Patents, Designs and Trademarks.
The decision is an eye-opening moment for change to be made to catering to disputes on authorship of non-human entity generated work. There is a clarion call for countries including Malaysia to answer and adjust and adapt to this by passing new laws or at the very least amending the current legal structure to accommodate the glaring presence and emergence of AI in the community which may affect industries across the board.
Nonetheless, the Ministry of Science, Technology and Innovation in Malaysia, on 20 September 2024 launched the National Guidelines on AI Governance & Ethics to support the implementation of the Malaysian National Artificial Intelligence Roadmap 2021-2025. Although it is still unclear as to what mechanism can be adopted to address the legal complexities or intricacies involving AI, it remains a hopeful possibility that Malaysia may start the ball rolling in introducing new laws which will adequately regulate the legal problems involving AI.
In the meantime, it is likely that when the need arises, the Malaysian courts will rely on utilising or citing interpretations and/or precedents of other jurisdictions in this area.
Trade Mark and Copyright Infringement via the Internet
Recent amendments to the CA 1987 and the TMA 2019 have expanded the scope of infringement proceedings to extend liability to secondary infringers (including internet service providers (ISPs)).
While Section 43H of the CA 1987 expressly provides for a takedown mechanism (by way of notification) for electronic copies of works published on the internet, this is not mirrored in the TMA 2019.
Nonetheless, there is a need to be cautious as “use” of a trade mark for purposes of infringement proceedings is broadly defined under the TMA 2019. Given this, it is important that sufficient takedown procedures and guidelines, as well as adequate screening and filter mechanisms are adopted by ISPs to reduce the possibility of being liable for infringement of these intellectual property rights.
Use of Trade Mark on the Internet
Regulation 6 of the Regulations states that in relation to the use of a sign or trade mark on the internet, the provisions provided in the TMA 2019 and the Regulations and the Joint Recommendation must be taken into account.
Importance of Trade Mark Registration for Use on E-Commerce Platforms
Several online marketplaces require a valid trade mark registration certificate to enable sellers to verify their status as brand owners, authorised sellers or to provide evidence of selling authentic products on their platform. Therefore, as a precautionary measure, it is advisable for business owners to secure a valid trade mark registration before expanding their business to online platforms.
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info@law-partnership.com www.law-partnership.comIntellectual Property Enforcement Against Illicit Alcohol and Copyright Piracy in Malaysia
Introduction to intellectual property enforcement in Malaysia
Intellectual property (IP) enforcement actions in Malaysia have significantly advanced in recent years, as the country has seen an increase in efforts to combat IP infringement. Amendments have been made to key pieces of legislation, such as the Trademarks Act 2019 (the “TMA 2019”) and the Copyright Act 1987 (the “CA 1987”), which have provided further clarity to and expanded the rights of trade mark and copyright owners in terms of unauthorised use of their IP. Despite these developments, Malaysia continues to be a significant hub for various IP infringement activities.
To provide greater insight into the IP enforcement scene in Malaysia, we will explore the current state of issues involving counterfeit alcohol and copyright piracy within the country, along with their implications and possible solutions to these issues.
Trade mark enforcement against illicit alcohol
Illicit alcohol can generally be classified into two categories as follows.
Illicit alcohol remains a persistent challenge in Malaysia, posing significant threats to public health, government tax revenue and the socio-economic landscape. With counterfeiters employing increasingly sophisticated methods, the enforcement of trade mark rights against these illicit activities have become a critical priority for brand owners and enforcement authorities.
Enforcement laws in Malaysia
Illicit trade falls under the jurisdiction of several agencies, with the Multi-Agency Task Force (the “Task Force”) serving as a collaborative platform for co-ordinated and sustained enforcement efforts. The Task Force facilitates the sharing of information between government bodies and industry stakeholders, enabling discussions on measures and policies to combat illicit trade, particularly in tobacco and alcohol.
The key legislation relevant to addressing illicit trade includes:
Other statutes include the Food Act 1983 and Regulations 1985, the Consumer Protection (Electronic Trade Transaction) Regulations 2012 and the Anti-Money Laundering, Anti-Terrorism Financing & Proceeds of Unlawful Activities Act 2001.
These laws collectively form the foundation for combating illicit trade in Malaysia, safeguarding public interests and ensuring compliance with legal standards.
Latest trends
Before the COVID-19 pandemic, counterfeit alcohol was predominantly sold at brick-and-mortar stores. Stock was typically stored on the premises, making business owners or landlords relatively easy to identify and locate.
With the rise of e-commerce platforms during the pandemic, counterfeit alcohol sellers adapted their methods. Vendors now no longer provide return addresses and the separation of storing and packing facilities make tracking them more challenging. Moreover, counterfeit labels and stickers can now be easily procured through international platforms and shipped into Malaysia without significant scrutiny.
After the pandemic, the sale of counterfeit alcohol has shifted further toward clandestine methods. Transactions are now often carried out through runners or mobile applications. Promotions are primarily conducted via chat applications like WhatsApp, with payments made directly to sellers, often using proxy accounts. Deliveries are handled by third-party logistics providers, leaving no traceable seller details.
Recent discoveries, such as counterfeit glass bottles found in East Malaysia, suggest the possible large-scale entry of counterfeit spirits into Malaysia. These developments underline the increasing sophistication and scale of counterfeit alcohol operations in the country, posing significant risks to public health and safety.
Implications of illicit alcohol
The widespread availability of illicit alcohol in Malaysia has significant and far-reaching implications across multiple sectors, including public health, government revenue, societal trust and national security.
Illicit alcohol often contains toxic substances such as methanol, antifreeze, nail polish remover and even paint stripper. Manufactured in unsanitary conditions with potentially hazardous ingredients, counterfeit alcohol poses serious health risks, including blindness, organ failure, coma and even death. The consumption of these dangerous products places a substantial burden on the public healthcare system, requiring significant allocation of public funds to treat cases of acute poisoning and other health emergencies.
Counterfeit alcohol evade taxation entirely, resulting in a significant loss of government tax revenue. While the government loses out on these unpaid taxes, it simultaneously incurs substantial enforcement costs to curb counterfeiting activities. This dual financial impact weakens fiscal stability and diverts resources from other critical areas of governance.
Furthermore, counterfeiters exploit the IP of established brands, diluting their market presence and eroding consumer trust. Customers often struggle to distinguish between genuine and counterfeit products, resulting in dissatisfaction and potential reputational damage to trusted brands. This undermines consumer confidence in the overall market and creates an uneven playing field for legitimate businesses.
Additionally, counterfeiting has become one of the fastest-growing forms of economic crime globally, driven by a combination of high profits and low penalties. Profits generated from counterfeit alcohol often fund organised criminal networks, enabling these syndicates to grow in power and sophistication. This escalation poses a significant challenge for authorities tasked with combating such activities, further complicating efforts to ensure public safety and security.
Addressing these interconnected challenges requires a co-ordinated approach among stakeholders, including government agencies, brand owners and enforcement authorities, to mitigate the adverse effects of illicit alcohol effectively.
Current enforcement efforts in Malaysia
Efforts to combat counterfeit alcohol in Malaysia involve a multi-agency approach, with enforcement actions spearheaded by several key authorities. These actions typically include raids and investigations carried out by the Royal Malaysian Police, the Ministry of Domestic Trade and Costs of Living (MDTC) and the Royal Malaysian Customs Department (RMCD). These agencies work collaboratively to disrupt the supply chain of counterfeit alcohol and penalise those involved in its production, distribution and sale.
I) Enforcement efforts
Raids are one of the primary methods of enforcement, targeting physical premises such as warehouses, distribution centres and retail outlets suspected of selling or storing counterfeit alcohol. These actions often lead to the seizure of counterfeit goods, dismantling of production facilities and the arrest of individuals involved in illicit activities.
For example, in March 2024, the RMCD at Negeri Sembilan seized liquor valued at MYR13.4 million. In May 2024, the Marine Police at Johor Bahru successfully raided and confiscated counterfeit alcohol worth over MYR500,000. Furthermore, in November 2024, the RMCD seized smuggled cigarettes and alcoholic beverages valued at over MYR3 million.
II) Online monitoring and e-commerce collaboration
Recognising the growing prevalence of counterfeit alcohol sold through online platforms, authorities have adopted proactive online monitoring measures to identify and curb illicit sales. This includes surveillance of e-commerce platforms, social media marketplaces and chat applications where counterfeit products are advertised.
E-commerce platforms themselves have also taken steps to combat the sale of counterfeit alcohol on their sites. For example, Lazada has implemented online monitoring systems to detect and remove listings of counterfeit products.
Collaborations between government agencies and private sector players are crucial for addressing the challenges posed by the digital marketplace. While these efforts have achieved notable successes, combating counterfeit alcohol requires sustained collaboration among enforcement authorities, industry stakeholders and online platforms. Enhanced measures, such as stricter regulations, better traceability systems and public awareness campaigns, can further strengthen these efforts and mitigate the adverse effects of counterfeit alcohol on public health, government revenue and societal trust.
Copyright piracy in Malaysia
Laws in Malaysia
On 22 December 2021, Malaysia introduced a new Section 43AA to the CA 1987, whereby it is illegal for any individual and/or body corporate to commit or facilitate copyright infringement by manufacturing, importing, selling or letting for hire, offering, exposing, distributing, offering to the public and providing any service of streaming technology.
In essence, as part of Malaysia’s efforts to curb illegal streaming, Section 43AA of the CA 1987 explicitly bans any illicit streaming devices as it contravenes copyright laws in the country. The introduction of this new provision came as a result of a landmark ruling by the Intellectual Property Court in Malaysia that declared that selling, offering or distributing TV boxes or streaming devices enabling unauthorised access to copyrighted content was copyright infringement.
Latest trends
Digital piracy, which is the act of copying and distributing copyrighted digital content without the copyright owner’s permission or authorisation is prevalent in Malaysia. The introduction of illegal Android boxes known as “TV Box” allows any individual to access copyrighted materials such as movies and live events such as football matches, without the need to subscribe to any authorised and legal channels. These illicit streaming devices (ISDs) are often offered at relatively low price points compared to the authorised channels.
A common use of ISDs is for the streaming of sporting events. It is a common occurrence in Malaysia for pubs or bars and certain eateries to broadcast English Premier League football live at their premises. However, unbeknown to customers, the live broadcast of the football matches is often illegal as they are being streamed or broadcasted without a legitimate subscription.
Implications of ISDs
First and foremost, ISDs pose a considerable threat to the intellectual property rights of copyright owners. Astro Malaysia, the exclusive broadcast company for Premier League and English FA Cup football in Malaysia, stated that the estimated loss to the industry and to the Malaysian economy due to piracy is over MYR3 billion annually (USD665 million) with MYR500 million in taxes to the Malaysian government being lost.
The implications and loss in revenue due to piracy have severe implications such as the potential risks of loss of jobs for individuals involved in the industry. It can also be a block to creativity within the industry where copyright owners alike would be dissuaded from creating new movies, tv shows and other content. Ultimately, consumers would be the losing party due to the rampant use of ISDs.
It would also prevent any foreign investment in the Malaysian media and entertainment industry. Countries that have very strict laws against illicit streaming devices may shy away from investing in the media and entertainment industry in Malaysia, which would cause the economy to plummet further and reduce jobs for creators within the industry.
Media companies such as Astro have invested millions into providing premium content to consumers within Malaysia. The widespread use of ISDs could see media giants lose interest in investing so much money into premium content as it would not be a profitable venture for them, potentially resulting in a reduced amount of premium content available for Malaysian consumers.
Furthermore, ISDs also affect the film industry. New releases of movies playing in cinemas are readily available through ISDs. Again, this further affects the Malaysian economy and causes losses to the film industry.
Efforts to combat ISDs and digital privacy
The Royal Malaysian Police and Astro have collaborated in organising an awareness programme for commercial enterprises that have been identified for using ISDs. The aim of the awareness programme was to raise awareness among commercial enterprises that showing unauthorised content is illegal and an offence under the CA 1987.
Furthermore, Section 41(1) of the CA 1987 provides for a situation where the use of ISDs is an offence and if convicted, businesses and/or business owners could be liable to a fine up to MYR200,000, to imprisonment for a term of up to 20 years or both.
In December 2024, the MDTC blocked access to 3,553 websites that were found to be violating the CA 1987. This is seen to be one of the fastest and most effective ways to disable and prevent digital piracy in Malaysia.
The Cyber Copyright Enforcement (CyCore) programme has also been implemented in Malaysia. The programme aims to establish a collaborative platform between the Ministry of Tourism, Arts and Culture and copyright holders alike in order to address the distribution of digital piracy.
The Intellectual Property Court at Kuala Lumpur (the “Court”) has been strict in finding liability against distributors of ISDs and also those that are found to be broadcasting copyrighted works illegally to the public. In May 2024, the Court held that the sale and distribution of TV boxes and ISDs that provided unauthorised access to copyrighted works constituted copyright infringement under Section 36 of the CA 1987. Although deemed to be a bold step, the decision by the Court has been received positively by authorities and the media and film industry in Malaysia. The Court’s decision signifies that the Malaysian courts are against ISDs and digital piracy.
In November 2024, the Court then found a local pub liable and awarded statutory damages of MYR75,000 to Astro in line with Section 37 of the CA 1987. This was the first time that statutory damages had been awarded in Malaysia. Statutory damages emphasise the importance of accountability and are a means of deterrence.
The criminal courts in Malaysia have also actively fined individuals and corporate bodies for using, showing and being in possession of ISDs. This further emphasises that both the Malaysian civil courts and criminal courts, are working to clamp down on ISDs and illicit streaming in Malaysia.
Conclusion
The fact that issues of trade mark and copyright infringement persist highlight possible gaps in enforcement and legislation surrounding IP protection despite the country’s efforts to curb IP infringement. Overall, the challenge remains implementing the protection granted under the TMA 2019 and CA 1987 and integrating the protection with relevant enforcement authorities in Malaysia. In fact, strengthening the capacity of these enforcement agencies and enhancing interdepartmental collaboration are crucial steps in addressing the above issues and is a solution that can only be improved over time.
We look forward to seeing how the IP enforcement landscape evolves and progresses in the coming years, where there is hope for Malaysia to move forward with stronger protections and a more robust response to infringement.
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